Our Company is a Private Company which takes security deposits of Rs. 10,000 from its employees on the following terms & conditions:
1) A staff will be eligible to get the interest on security deposit money after depositing his full complete installment of total amount Rs.10,000/-(Rs Ten thousand only) and interest will be calculated from the first day of successive month of the final installment.
2) Also, the staff will not be eligible for any interest if he/she leaves the Company within three months from the final installment deposited.
3) The staff will be paid interest on security money @ 6% (Six percent p.a. on quarterly compound basis) if he/she leaves the Company within next 2 years from completion of his/her full final installment of security money.
4) The rate of interest will be applicable @ 7% (Seven percent p.a. on quarterly compound basis) if staff leaves the Company after2 years from completion of his full final installment of security money.
Under the old Act, security deposit from employees was not treated as deposit. Under the new Act interest bearing security deposit which exceeds the annual salary of an employee will constitute deposit. Will the security deposit collected from employees by us be treated as deposits?
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